RESEARCH METHODOLOGY

By
B. CHANDRA
DEPARTMENT OF MANAGEMENT STUDIES
ISM, DHANBAD

Research Methodology

1.
2.
3.
4.
5.
6.
7.

Meaning of research Research is a scientific and systematic investigation and

contribution of new facts to the existing repertoire/ stock of knowledge in any branch.
Thus, it is a systematic quest of finding effective solution to a problem.
Why study Business research ?
Business research is a systematic inquiry that provides information to guide managerial
decisions. More specifically, it is a process of planning, acquiring, analyzing, and
disseminating relevant data, information, and insights to decision makers in ways that
mobilize the organization to take appropriate actions that, in turn, maximize Business
performance.

Factors stimulating interests in studying Research Methods :

Explosive growth and influence of internet
Stakeholders imposing greater influence
More vigorous competition.
More govt. interventions.
More complex decisions.
Maturing of management as a group of disciplines.
Greater computing power and speed.
1. Lower cost data collection.
2. Advanced visualization tools
3. More integration of data DATA WAREHOUSE
4. More and faster access to information DBMS & RDBMS
5. Advanced analytical tools for enhanced insights DATA MINING & ARTIFICIAL
INTELLIGENCE
6. Customized Reporting
8. New perspective on established research methodologies.

Using Data Warehouse and Data Mining in Marketing

Research
DATA SOURCES
Company Records
Surveys
Other Sources

Use the mined data to design

Marketing or Communication
Campaigns.

Measure results of the campaign,

And refine/repeat the process
If needed

BUILD DATA
WAREHOUSE

DATA MINING
Look for patterns of
Purchase, Behaviour,
Attitudes by analysing
Data from Warehouse

Big data: analytics and decision

The term big data making
refers to data that cannot be stored,
processed and analyzed for timely and accurate decision
making by traditional means.
The reason for this is that this data is of such a large volume,
velocity and variety (3 Vs) that it exceeds IT capacity.
This current situation is best exemplified by the fact that 90%
of all data that exists today was created within the last two
years (Forbes, 2011).
As a result, developments have been made in order to
measure variables through ever improving digital sensors,
communications and computational power. Moreover,
increasing data-storage capacity has created huge collections
of data.
Analytic and decision making tools for big data can allow
companies to discover trends and characteristics about their
customers that might otherwise remain hidden, from data
that were never apparent or intended in the source
information.

Research Areas in Management (Scope)

MARKETING

SEGMENTATION RESEARCH

PRODUCT RESEARCH

Determine the basis of

segmentation

Test concept

Determine optimal product

design

Package tests

Product modification

Select target markets

Create lifestyle profiles:

demography, media, and
product image characteristics

Brand positioning and

repositioning

Test marketing

Control score tests

Establish market potential and

responsiveness for various
segments

PROMOTIONAL RESEARCH

0.00%

APR

Optimal promotional budget

Sales promotion relationship

Optimal promotional mix

Copy decisions

Media decisions

Creative advertising testing

Evaluation of advertising effectiveness

Claim substantiation

PRICING RESEARCH

Pricing policies

Importance of price in brand selection

Product line pricing

Price elasticity of demand

Initiating and responding to price changes

$ALE

DISTRIBUTION RESEARCH
Determine
Types of distribution
Attitudes of channel members
Intensity of wholesale & resale coverage
Channel margins
Location of retail and wholesale outlets

Personnel :
Manpower Planning
Performance appraisal systems
Conflict management
Design of incentive plans
Leadership styles.
Training methods
Change Management.
Job satisfaction. Etc.
Finance :
Financial performance .
Cost analysis model
Portfolio management.
Break- even analysis.
Working Capital management model.
Economic growth models. Etc.
Production :
Forecasting
Inventory control
Master production scheduling.
Quality control
Work design.
Maintenance management.
Method study.
Flow and job shop scheduling etc.

Types of Research
Basic Research (Fundamental/Pure
research)
Applied Research
Problem identification research
Problem solving research

A Classification of Applied Research

Applied Research

Problem
Identification Research
Market Potential Research
Market Share Research
Market Characteristics Research
Sales Analysis Research
Forecasting Research
Business Trends Research

Problem Solving
Research

Segmentation Research
Product Research
Promotion Research
Distribution Research
Job satisfaction research

JARGONS AND TERMINOLOGY

CONCEPTS AND OVERVIEW

VARIABLES : In practice , the term variable is used as a

synonym for construct or the property being studied. In this
context, a variable is a symbol of an event, act,
characteristics, trait, or attribute that can be measured and
to which we assign categorical values.
For purpose of Data entry and analysis, we assign numerical
value to a variable based on the variables properties.
RANDOM VARIABLES : A variable is random if it takes on
different values as a result of the outcomes of a random
experiment. The values of the random variable are the
numerical values corresponding to each possible outcome
of the random experiment.
Types of Random variables

Dichotomous

Discrete

Continuous

Dichotomous variables : It takes on only two values,

reflecting the presence and absence of a property. The
values are generally represented by 0 & 1. For ex. Male or
Female.
Discrete variables : If a random variable is allowed to
take on only a limited number of values is called discrete
random variable.
Continuous variable : If a random variable is allowed to
assume any value within a given range or in some cases ,
an infinite set , it is a continuous random variable.
Independent and Dependent Variable : If one variable
depends upon or is a consequence of the other variable is
termed as dependent variable, and the variable that is
antecedent to the dependent variable is termed as
independent variable.
Independent variable a.k.a Predictor, Presumed cause,
Stimulus, Antecedent, Manipulated.
Dependent variable a.k.a Criterion, Presumed effect, Respond,
Consequence, Measured outcome.
Moderating Variables (MV) : It is a second independent
variable which has got significant or contingent effect on
the originally stated IV-DV relationship. For ex. Commission
based compensation (IV) will lead to increased sales
productivity (DV) per worker, especially among younger
workers (MV).

Extraneous Variables (EV): Variables other than the

independent variables , that influence the dependent variables
are termed as extraneous variables.
Intervening variables (IVV) : An intervening variable is a
conceptual mechanism through which IV and MV might affect
the DV. IVV may be defined as that factor which theoretically
affects the observed phenomenon but cannot be seen,
measured, or manipulated; its effect must be inferred from the
effects of the independent and moderate variables on the
observed phenomenon.
In the case of compensation hypothesis, one might view the
intervening variable to be job satisfaction.
An example illustrating the relationships among the above stated
variables.
A promotional campaign (IV) will increase savings activity (DV) ,
especially when free prizes are offered (MV) , but chiefly among
small savers (EV-control). The results come from enhancing the
motivation to save (IVV).

Propositions and Hypothesis

Proposition is defined as a statement about observable phenomena
(concepts) that may be judged as true or false. When a proposition is
formulated for empirical testing , it is called hypothesis.
A hypothesis is an unproven statement or proposition about a factor
or phenomenon that is of interest to the researcher.
Hypotheses also described as proposition in which variables are
assigned to cases.
A Case is defined as the entity or thing the hypothesis talks about.
For example: In Udaipur (case) Colgate toothpaste is the most
preferred (variable) brand. Also,
In Rajasthan (cases) Colgate
toothpaste is the most preferred (variable) brand
Descriptive Hypothesis : It states the existence, size, form, or
distribution of some variable. For ex. 70% of high school educated
males (cases) are unemployed (variable)
Relational Hypotheses : These are statements that describe a
relationship between two variables with respect to some case. For
ex. Foreign brands (variable) are perceived to be of better quality
(variable) by Indian (case) than the indigenous brands. The nature of
relationship between country of origin and perceived quality is not
specified.

Correlational Hypotheses : It states that the variables occur

together in some specified manner without implying that one
causes the other. For ex. The people of Udaipur prefer eating
fast food than Jaipur. Such weak claims are often made when
there are more basic causal forces that affect both variables.
Explanatory (causal) hypotheses : There is an implication
that the existence of or a change in one variable causes or
leads to a change in the other variable. For ex. An increase in
disposable income leads to the growth of entertainment
industry.
ROLE OF THE HYPOTHESIS
It guides the direction of the study.
It identifies facts that are relevant.
It suggests the appropriate form of research design.
It provides a framework for organizing the conclusions.
FEATURES OF A STRONG HYPOTHESIS
Adequate for its purpose.
Testable
Better than its rivals.

Types of Data

There are broadly two types of Data

1) Primary Data
2) Secondary Data

Primary Data : Data originated by the researcher for the specific

purpose of addressing the research problem.
Secondary Data : Data collected for some purposes other than
the problems at hand. For ex. A a retail mart wants to find out the
criteria used by the households to select departmental stores. The
secondary data can be obtained from Marketing Journals (Journal
of Retailing, Journal of Marketing Research etc.)
A COMPARISON OF PRIMARY AND SECONDARY DATA

Primary Data
Secondary Data
Collection purpose For the problems at hand not at hand
Collection process very involved
rapid and easy
Collection cost High
Low
Collection Time Long
Short

Primary Data : There are two types of primary data.

1) Qualitative Data 2) Quantitative Data

Quantitative Data
A) Descriptive

Survey Data

B) Causal

Observational
And other data

Experimental Data

Secondary Data : There are two types of secondary Data

1) Internal
2) External
Internal Data (Types)
External Data (Types)
Ready to use
Published materials
Requires further processing
Computerized database
Syndicated services

Data that can be exploited by businesses can broadly be classed into

the following three categories (PwC Australia, 2012):

Internal data
Consists of information that a business collects through its own systems
and processes.
It can consist of both quantitative and qualitative information and is
typically data type that provides the greatest insights for a business.

For example, Wal-Mart handles more than one million customer

transactions every hour, which it imports into databases estimated to
contain more than 2.5 petabytes of data. This information enables the
retailer to map out buyer behaviour as well as merchandising and
operational strategies.
Structured external data
Is provided by third-party sources. It often requires processing in order
to be coupled with existing internal information to yield even greater
insights.
Face book, for example, processes 2.5 billion pieces of content and
500+terabytes of data each day. The social network also pulls in 2.7
billion Likes, 300 million photos per day, and scans approximately 105
terabytes of data each half hour. This data provides a significant
amount of information about user behaviour.
Unstructured external data
Comes from sources outside of the control of a business but with a
potential impact on it.

RESEARCH PROCESS

Step 1. Problem Definition

Discover the management dilemma
Define the management question
Define the research question
Refine the research questions
Step-2. Research Proposal
Step-3. Development of an Approach to the problems
Formulating an objective/theoretical framework.
Developing an analytical models, research questions, and
hypothesis
Step-4. Research design formulation.
Data collection design
Sampling design.
Instrument development and pilot testing
Step-5. Data collection and preparation
Step-6. Data preparation and analysis.
Step-7. Report preparation and presentation.
Step-8. Management Decision.

Problem Formulation / Definition

Problem definition is A broad statement of the general

problem and identification of the specific components of the
research problem.
It allows researcher to obtain all the information needed to
address the management decision problem.
It guides the researcher in proceeding with the projects.
Broad statement : It is the initial statement of the research
problem that provides an appropriate perspective of the
problem.
Specific components : It focus on the key aspects of the
problem and provide clear guidelines on how to proceed
further.
Management decision problem
Research problem
Should a new product be introduced ?
To determine
consumer
preferences and
purchase
intentions for the
proposed new product.
Should the Ad. Campaign be changed ? Determining the
effectiveness of


1)
2)
3)
4)
5)
)
)
1)
2)
3)
4)
6)
)
)

Tasks Involved in defining the Problem

Discussions with Decision Maker (s)
Interview with the experts.
Secondary Data analysis.
Literature Review.
Qualitative Research.
Environmental context to the problems
Factors having impact on the definition of the Research
Problems.
Past information and forecasts.
Resources and constraints.
Objectives
Test unit property (Respondents Behaviour)
5) Legal
Environment
Economic Environment 7) Technological skills.
LITERATURE REVIEW
Literature review is the systematic study of scholarly articles,
publications, scant literature for getting the relevant data and
trends from the previous research. It also generates the need
for proposed research work by appraising the shortcomings or
information gaps in secondary data sources.

Summary of the Beginning

Stages of Marketing Research
Symptom of Marketing Problem

Sales are not picking up for a new

product/brand

Exploratory Research
Initial understanding of Possible
Causes of the Problem

The brand has an image problem

Marketing Decision Problem

How can we improve the brands

image?

Formulation of Research Problem

See next slide

Statement of Research Objectives

See next slide

Summary of the Beginning Stages of

Marketing Research - Continued

Research Questions:

Research Objectives

1) What is the current image of

our brand compared to
competitors brands?

1) To determine our brands

image compared to
competitors brands.

2) What is the role of our price,

packaging, distribution,
advertising, etc on the
current image of our brand?

2) To determine the source of

our current image problems.

3) Will a change in packaging

lead to a positive change in
image?

3) To examine the specific role

of packaging in the present
image of our brand.

RESEARCH PROPOSAL
Once the research gap is established by defining the problem,
the research proposal is made. Research proposal is a written
document which suggests the projects purpose and the
proposed methods of investigation. Time and budgets,
responsibilities and obligations are spelled out.
DEVELOPMENT OF AN APPROACH TO THE PROBLEM
Components of the approach :
1. Objective /Theoretical Framework.
2. Analytical Model .
a. Verbal Model
b. Graphical Model
c. Mathematical Model
3. Research Questions (RQ)
4. Hypotheses.
5. Specification of Information needed.
Objective/theoretical Framework : Research should be based
on objective evidence and supported by theory. Objective
evidence is gathered by compiling relevant findings from
secondary sources. Theory is a conceptual scheme based on
foundational statements called axiom, which are assumed to
be true. The researcher should rely on theory to determine

Analytical Model : It is a set of variables and their

interrelationship designed to represent , in whole or in part,
some real system and process.
Verbal Model : The variables and their relationships are stated
in prose form.
Graphical Model : It is visual and used to isolate variables and
to suggest directions of relationships.
Mathematical Model : Explicitly specify the relationships
among variables, usually in equation form.
EXAMPLE OF MODEL BUILDING
Objective : Analyzing the key factors for a Retail store
patronage/ Loyalty.
Verbal Model : A consumer first becomes aware of the retail
store. That person then gains an understanding of the store by
evaluating in terms of the factors comprising choice criteria.
Based on the evaluation, the consumer forms a degree of
preference for the store. If preference enough, the consumer
will patronize the store.

Graphical Model
Patronage
Preference
Understanding : Evaluation

Awareness
Mathematical model
n
y = a0 +
ai +xi
i=1
Where, y = Degree of preference
a0 , ai = Model parameters to be examined statistically.
xi = Store patronage factors that constitute the choice
criteria.

Research Questions (RQs)

Research questions are refined statements of the specific
components of the problem.
The formulation of research questions are not only guided by
the problem definition , but also the theoretical framework and
the analytical model adopted .
Development of Research questions and hypothesis
Components of the problem
Objective / Theoretical framework
Research questions
Analytical Model
Hypothesis
For Ex. :
RQ : Do customers of Big Bazaar exhibit store loyalty ?
H : Customers of Big Bazaar are loyal.
Specification of Information needed
By focusing on each component of the problem and the
analytical framework, models, RQs, Hypothesis; researcher can
determine what information is required to carry out the
research project.

RESEARCH DESIGN

Research design is a blueprint for the collection , measurement, and

analysis of data.
It specifies the details of the procedures necessary for obtaining the
information needed to structure and/or solve research problems.
Components of a Research Design
Design the exploratory, descriptive, and/or causal phases of the research
Define the information needed
Specify the measurement and scaling procedures
Construct and pretest a questionnaire (interviewing form) or an
appropriate form for data collection
Specify the sampling process and sample size
Develop a plan of data analysis
Classification of Research Design
Exploratory Research Design
Conclusive Research Design
Descriptive Research
Causal research

Exploratory & Conclusive Research Differences

Exploratory

Conclusive

Objective:

To provide insights and

understanding.

To test specific hypotheses and

examine relationships.

Characteristics:

Information needed is defined

only loosely. Research process is
flexible and unstructured.
Sample is small and nonrepresentative. Analysis of
primary data is qualitative.

Information needed is clearly

defined. Research process is formal
and structured. Sample is large and
representative. Data analysis is
quantitative.

Findings
/Results:

Tentative.

Conclusive.

Outcome:

Generally followed by further

exploratory or conclusive
research.

Findings used as input into decision

making.

A Comparison of Basic Research Designs

Exploratory

Descriptive

Causal

Objective:

Discovery of ideas
and insights

Describe test unit

characteristics or
functions

Determine cause
and effect
relationships

Characteristics:

Flexible, versatile

Marked by the prior

formulation of specific
hypotheses

Manipulation of one
or more independent
variables

Often the front end

of total research
design

Preplanned and
structured design

Control of other
mediating variables

Expert surveys
Pilot surveys
Secondary data
Qualitative research

Secondary data
Surveys
Panels
Observation and other
data

Methods:

Experiments

Uses of Exploratory Research

Formulate a problem or define a problem more precisely

Identify alternative courses of action
Develop hypotheses
Isolate key variables and relationships for further examination
Gain insights for developing an approach to the problem
Establish priorities for further research
Methods of Exploratory Research
Survey of experts
Pilot surveys
Secondary data analyzed in a qualitative way
Qualitative research

Uses of Descriptive Research

To describe the characteristics of relevant groups, such as consumers,
salespeople, organizations, or market areas.
To estimate the percentage of units in a specified population exhibiting
a certain behavior.
To determine the perceptions of product characteristics.
To determine the degree to which marketing variables are associated.
To make specific predictions

Methods of Descriptive Research

Secondary data analyzed in a quantitative as opposed to a
qualitative manner
Surveys
Panels
Observational and other data
Uses of Casual Research
To understand which variables are the cause (independent
variables) and which variables are the effect (dependent
variables) of a phenomenon
To determine the nature of the relationship between the causal
variables and the effect to be predicted
METHOD: Experiments

Cross-sectional Designs
Involve the collection of information from any given
sample of population elements only once.
In single cross-sectional designs, there is only one
sample of respondents and information is obtained
from this sample only once.
In multiple cross-sectional designs, there are two
or more samples of respondents, and information from
each sample is obtained only once. Often, information
from different samples is obtained at different times.
Cohort analysis consists of a series of surveys
conducted at appropriate time intervals, where the
cohort serves as the basic unit of analysis. A cohort is
a group of respondents who experience the same event
within the same time interval.

Consumption of Various Soft Drinks

by Various Age Cohorts
Age
8-19
20-29
30-39
40-49
50+
C1:
C2:
C3:
C4:

cohort
cohort
cohort
cohort

Percentage consuming on a typical

day
1950
1960
1969
1979
52.9
45.2
33.9
23.2
18.1
born
born
born
born

62.6
60.7
46.6
40.8
28.8
C1

prior to 1900
1901-10
1911-20
1921-30

73.2
76.0
67.7
58.6
50.0
C2
C5:
C6:
C7:
C8:

81.0
75.8
71.4
67.8
51.9
C3

cohort
cohort
cohort
cohort

born
born
born
born

C8
C7
C6
C5
C4
1931-40
1940-49
1950-59
1960-69

Longitudinal Designs
A fixed sample (or samples) of population
elements is measured repeatedly on the
same variables
A longitudinal design differs from a crosssectional design in that the sample or
samples remain the same over time

Relative Advantages and Disadvantages of

Longitudinal
and Cross-Sectional Designs
Table
3.4

Evaluatio
n Criteria

Cross-Sectional Longitudinal
Design
Design

Detecting Change
+
Large amount of data
+
collection
+
Accuracy
+
Representative Sampling
+
Response bias
Note: A + indicates a relative advantage over the
other design, whereas a - indicates a relative
disadvantage.

Cross-Sectional Data May Not Show

Change
Brand Purchased

Time Period
Period 1
Survey

Brand A
Brand B
Brand C
Total

200
300
500
1000

Period 2
Survey

200
300
500
1000

Longitudinal Data May Show

Substantial
Table 3.6 Change
Brand
Purchased
in Period
1
Brand A
Brand B
Brand C
Total

Brand Purchased in Period 2

Brand A Brand B Brand C Total
100
25
75
200

50
100
150
300

50
175
275
500

200
300
500
1000

Exploratory Research Design:

Secondary Data
A Classification of Secondary Data

Secondary Data

Internal

Ready to
Use

Requires
Further
Processing

External

Published
Materials

Computerized
Databases

Syndicated
Services

Exploratory Research Design: Qualitative

Research
A Classification of Qualitative Research
Procedures
Qualitative Research
Procedures

Direct (Non
disguised)

Focus Groups

Association
Techniques

Indirect
(Disguised)

Projective
Techniques

Depth Interviews

Completion
Techniques

Construction
Techniques

Expressive
Techniques

Characteristics of Focus Groups

Group Size

8-12

Group Composition
Homogeneous, respondents,
prescreened
Physical Setting

Relaxed, informal atmosphere

Time Duration

1-3 hours

Recording

Use of audiocassettes and videotapes

Moderator
Observational, interpersonal, and
communication skills of the moderator

Depth Interview Techniques:

Laddering technique, allows the researcher to tap
into respondents deep underlying psychological
and emotional reasons that affect a phenomenon.
hidden issue questioning, the focus is not on
socially shared values but rather on personal
sore spots; not on general lifestyles but on
deeply felt personal concerns.

Depth Interview Techniques:

Symbolic Analysis
Symbolic analysis attempts to analyze the symbolic
meaning of objects by comparing them with their opposites.
The logical opposites of a product that are investigated are:
non-usage of the product, attributes of an imaginary nonproduct, and opposite types of products.
What would it be like if you could no longer use airplanes?

Without planes, I would have to rely on letters and long

distance calls.

Airlines sell to the managers face-to-face communication.

Advertising theme: The airline will do the same thing for a

manager as Federal Express does for a package.

Definition of Projective Techniques

An
unstructured,
indirect
form
of
questioning that encourages respondents
to project their underlying motivations,
beliefs, attitudes or feelings regarding the
issues of concern.
In projective techniques, respondents are
asked to interpret the behavior of others.
In interpreting the behavior of others,
respondents indirectly project their own
motivations, beliefs, attitudes, or feelings
into the situation.

Word Association
In word association, respondents are presented
with a list of words, one at a time and asked to
respond to each with the first word that comes to
mind. The words of interest, called test words,
are interspersed throughout the list which also
contains some neutral, or filler words to disguise
the purpose of the study. Responses are analyzed
by calculating:
(1) the frequency with which any word is given
as a response;
(2) the amount of time that elapses before a
response is given; and
(3) the number of respondents who do not
respond at all to a test word within a reasonable

Word Association
EXAMPLE

STIMULUS
washday
fresh
pure
scrub
filth
bubbles
water
family
towels

MRS. M
MRS.
everyday
and sweet
air
don't; husband does
this neighborhood
bath

C
ironing
clean
soiled
clean
dirt
soap and

squabbles
dirty

children
wash

Completion Techniques
In Sentence completion, respondents are given
incomplete sentences and asked to complete them.
Generally, they are asked to use the first word or phrase
that comes to mind.
A
person
who
shops
______________________

at

Big

Bazaar

is

Dr. Manmohan Singh is most liked by ____________________

When I think of shopping in a department store, I ________

A variation of sentence completion is paragraph
completion, in which the respondent completes a
paragraph beginning with the stimulus phrase.

Construction Techniques
With a picture response, the respondents are
asked to describe a series of pictures of ordinary
as well as unusual events. The respondent's
interpretation of the pictures gives indications of
that individual's personality.

In cartoon tests, cartoon characters are shown

in a specific situation related to the problem. The
respondents are asked to indicate what one
cartoon character might say in response to the
comments of another character. Cartoon tests
are simpler to administer and analyze than
picture response techniques.

Expressive Techniques
In expressive techniques, respondents are
presented with a verbal or visual situation and
asked to relate the feelings and attitudes of other
people to the situation.
Role playing Respondents are asked to play the
role or assume the behavior of someone else.
Third-person technique
The respondent is
presented with a verbal or visual situation and the
respondent is asked to relate the beliefs and
attitudes of a third person rather than directly
expressing personal beliefs and attitudes. This
third person may be a friend, neighbor, colleague,
or a typical person.

A Classification of Research Data

Research Data

Secondary Data

Primary Data

Qualitative Data
Descriptive
Survey
Data

Observational
and Other

Quantitative Data
Causal
Experiment
al Data

Descriptive Research Design: Survey and Observation

A Classification of Survey Methods
Survey
Methods

Telephone

Personal

In-Home

Traditional
Telephone

Mall
Intercept

ComputerAssisted
Telephone
Interviewing

Mail

ComputerAssisted Personal
Interviewing
Mail
Interview

Electronic

E-mail

Mail
Panel

Internet

Criteria for Evaluating Survey Methods

Flexibility of Data Collection
The flexibility of data collection is determined primarily by
the extent to which the respondent can interact with the
interviewer and the survey questionnaire.

Diversity of Questions
The diversity of questions that can be asked in a survey
depends upon the degree of interaction the respondent has
with the interviewer and the questionnaire, as well as the
ability to actually see the questions.

Use of Physical Stimuli

The ability to use physical stimuli such as the product, a
product prototype, commercials, or promotional displays
during the interview.

Response Rate
Survey response rate is broadly defined as the
percentage of the total attempted interviews that
are completed.
Perceived Anonymity
Perceived anonymity refers to the respondents'
perceptions that their identities will not be
discerned by the interviewer or the researcher.

Social Desirability/Sensitive Information

Social desirability is the tendency of the
respondents to give answers that are socially
acceptable, whether or not they are true.

Sample Control
Sample control is the ability of the survey mode to reach the
units specified in the sample effectively and efficiently.
Control of the Data Collection Environment
The degree of control a researcher has over the environment in
which the respondent answers the questionnaire.

Control of Field Force

The ability to control the interviewers and supervisors involved
in data collection.

Quantity of Data
The ability to collect large amounts of data.

Potential for Interviewer Bias

The extent of the interviewer's role determines the
potential for bias.
Speed
The total time taken for administering the survey
to the entire sample.
Cost
The total cost of administering the survey and
collecting the data.

A Comparative Evaluation of Survey

Methods
Criteria

Mall-

In-Home Intercept
Interviews Interviews CAPI

Flexibilityofdata
collection
Diversityofquestions

Moderate
tohigh
Low

High

High

High

High

Useofphysicalstimuli

Low

High

Moderate
Low
Moderate

Moderate
tohigh
Potentially
high
Moderate
tohigh
Low
High
High

Perceivedanonymityof
therespondent
Socialdesirability

Moderate

Low

Moderate

High

High

Obtainingsensitive
information
Potentialforinterviewer
bias
Speed

High

Low

Low

Moderate

High

High

High

Moderate

Cost

Moderate

High

Samplecontrol
Controlofdatacollection
environment
Controloffieldforce
Quantityofdata
Responserate

Phone/
CATI

Moderate
tohigh
Moderate

Mail
Panels

E-Mail

Internet

Moderate
Low
Low
Low
tohigh
High
Moderate Moderate Moderate

Moderate
tohigh
Moderate
tohigh
Moderate

High

Moderate Moderate
High

Mail
Surveys

High

Moderate Moderate
Low
Low

Moderate
tohigh
Low

Low
Low
Low

Lowto
moderate
Low

Moderate Moderate
High
High
High
High
Moderate Moderate Moderate
High
Moderate Moderate
High
High
Low
Moderate
Low
Very
Low
Low
Low
High
High
Moderate
High
Moderate
toHigh
Lowto
moderate
Low

Moderate Moderate
tohigh
tohigh
Moderate Moderate
tohigh
tohigh

Low
High
None
Low
Low

Low

Moderate

Low

Moderate Moderate
toHigh
None
None

High

Lowto
moderate
Lowto
moderate

High
Low

None
Very
high
Low

Observation Methods (Nature)

Structured
versus Unstructured Observation

For
structured
observation,
the
researcher specifies in detail what is to be
observed and how the measurements are
to be recorded, e.g., an auditor performing
inventory analysis in a store.
In
unstructured
observation,
the
observer monitors all aspects of the
phenomenon that seem relevant to the
problem at hand, e.g., observing children
playing with new toys.

Observation Methods (Nature)

Disguised versus Undisguised Observation
In
disguised
observation,
the
respondents are unaware that they are
being observed.
Disguise may be
accomplished by using one-way mirrors,
hidden
cameras,
or
inconspicuous
mechanical devices. Observers may be
disguised as shoppers or sales clerks.
In
undisguised
observation,
the
respondents are aware that they are under
observation.

Observation Methods (Nature)

Natural versus Contrived Observation
Natural observation involves observing
behavior as it takes places in the
environment.
For example, one could
observe the behavior of respondents
eating fast food in a restaurant.
In contrived observation, respondents'
behavior is observed in an artificial
environment, such as a test kitchen.

A Classification of Observation
Methods
Observation Methods

Personal
Observation

Mechanical
Observation

Audit

Content
Analysis

Trace
Analysis

Observation Methods
Personal Observation

A
researcher
observes
actual
behavior as it occurs.
The observer does not attempt to
manipulate the phenomenon being
observed but merely records what
takes place.
For example, a researcher might
record traffic counts and observe
traffic flows in a department store.

Observation Methods
Mechanical Observation
Do not require respondents' direct participation.
the AC Nielsen audimeter
turnstiles that record the number of people entering or
leaving a building.
On-site cameras (still, motion picture, or video)
Optical scanners in supermarkets
Do require respondent involvement.
eye-tracking monitors
pupilometers
psychogalvanometers
voice pitch analyzers
devices measuring response latency

Observation Methods
Audit
The researcher collects data by examining
physical records or performing inventory
analysis.
Data are collected personally by the
researcher.
The data are based upon counts, usually of
physical objects.
Retail and wholesale audits conducted by
marketing research suppliers.

Observation Methods
Content Analysis
The objective, systematic, and quantitative
description of the manifest content of a
communication.
The unit of analysis may be words, characters
(individuals or objects), themes (propositions),
space and time measures (length or duration of
the message), or topics (subject of the
message).
Analytical categories for classifying the units
are developed and the communication is broken
down according to prescribed rules.

Observation Methods
Trace Analysis
Data collection is based on physical traces, or evidence, of past
behavior.

The selective erosion of tiles in a museum indexed by the

replacement rate was used to determine the relative popularity of
exhibits.
The number of different fingerprints on a page was used to gauge
the readership of various advertisements in a magazine.
The position of the radio dials in cars brought in for service was used
to estimate share of listening audience of various radio stations.
The age and condition of cars in a parking lot were used to assess
the affluence of customers.
The magazines people donated to charity were used to determine
people's favorite magazines.
Internet visitors leave traces which can be analyzed to examine
browsing and usage behavior by using cookies.

A Comparative Evaluation of Observation

Methods
Criteria

Personal
Mechanical
Audit
Content Trace
Observation Observation
Analysis Analysis Analysis

Degree of structure
Low Low to high
High High Medium
Degree of disguise
Medium Low to high
Low High High
Ability to observe
High Low to high
High Medium Low
in natural setting
Observation bias
High Low
Low Medium Medium
Analysis Bias
High Low to
Low Low Medium
Medium
General remarks
Most
Can be
Expensive Limited to Method of
flexible intrusive
commulast resort
nications

Concept of Causality
A statement such as "X causes Y " will have the following
meaning to an ordinary person and to a scientist.
____________________________________________________
Ordinary Meaning
Scientific Meaning
____________________________________________________
X is the only cause of Y.
X is only one of a number of
possible causes of Y.
X must always lead to Y
The occurrence of X makes the
(X is a deterministic
occurrence of Y more probable
cause of Y).
(X is a probabilistic cause of Y).

It is possible to prove
We can never prove that X is a
that X is a cause of Y.
cause of Y. At best, we can
infer that X is a cause of Y.
____________________________________________________

Conditions for Causality

Concomitant variation is the extent to
which a cause, X, and an effect, Y, occur
together or vary together in the way
predicted by the hypothesis under
consideration.
The time order of occurrence condition
states that the causing event must occur
either before or simultaneously with the
effect; it cannot occur afterwards.
The absence of other possible causal
factors means that the factor or variable
being investigated should be the only
possible causal explanation.

Definitions and Concepts

Independent variables are variables or
alternatives that are manipulated and whose
effects are measured and compared, e.g., price
levels.
Test units are individuals, organizations, or other
entities whose response to the independent
variables or treatments is being examined, e.g.,
consumers or stores.
Dependent variables are the variables which
measure the effect of the independent variables
on the test units, e.g., sales, profits, and market
shares.
Extraneous variables are all variables other
than the independent variables that affect the
response of the test units, e.g., store size, store

Experimental Design
An experimental design is a set of
procedures specifying
the test units and how these units are to be
divided into homogeneous subsamples,
what independent variables or treatments
are to be manipulated,
what dependent variables are to be
measured, and
how the extraneous variables are to be
controlled.

Validity in Experimentation
Internal validity refers to whether the
manipulation of the independent variables
or treatments actually caused the
observed effects on the dependent
variables. Control of extraneous variables
is a necessary condition for establishing
internal validity.
External validity refers to whether the
cause-and-effect relationships found in the
experiment can be generalized. To what
populations, settings, times, independent
variables and dependent variables can the
results be projected?

Extraneous Variables
History refers to specific events that are external
to the experiment but occur at the same time as
the experiment.
Maturation (MA) refers to changes in the test
units themselves that occur with the passage of
time.
Testing effects are caused by the process of
experimentation. Typically, these are the effects
on the experiment of taking a measure on the
dependent variable before and after the
presentation of the treatment.
The main testing effect (MT) occurs when a
prior observation affects a latter observation.

Extraneous Variables
In the interactive testing effect (IT), a prior
measurement affects the test unit's response to
the independent variable.
Instrumentation (I) refers to changes in the
measuring instrument, in the observers or in the
scores themselves.
Statistical regression effects (SR) occur when
test units with extreme scores move closer to the
average score during the course of the
experiment.
Selection bias (SB) refers to the improper
assignment of test units to treatment conditions.
Mortality (MO) refers to the loss of test units
while the experiment is in progress.

Controlling Extraneous
Variables
Randomization refers to the random assignment
of test units to experimental groups by using
random numbers. Treatment conditions are also
randomly assigned to experimental groups.
Matching involves comparing test units on a set of
key background variables before assigning them to
the treatment conditions.
Statistical control involves measuring the
extraneous variables and adjusting for their effects
through statistical analysis.
Design control involves the use of experiments
designed to control specific extraneous variables.

A Classification of Experimental
Designs
Experimental Designs

Pre-experimental
One-Shot
Case Study
One Group
PretestPosttest
Static Group

True
Experiment
al
Pretest-Posttest
Control Group

Quasi
Experimental

Statistical

Time Series

Randomize
d Blocks

Posttest: Only
Control Group

Multiple
Time Series

Latin
Square

Solomon FourGroup

Factorial
Design

Statistical Designs
Statistical designs consist of a series of basic
experiments that allow for statistical control and
analysis of external variables and offer the following
advantages:
The effects of more than one independent variable
can be measured.
Specific extraneous variables can be statistically
controlled.
Economical designs can be formulated when each
test unit is measured more than once.
The most common statistical designs are the
randomized block design, the Latin square design, and
the factorial design.

Randomized Block Design

Is useful when there is only one major
external variable, such as store size, that
might influence the dependent variable.
The test units are blocked, or grouped, on
the basis of the external variable.
By blocking, the researcher ensures that
the various experimental and control
groups are matched closely on the
external variable.

Randomized Block Design

Treatment Groups
Commercial
Commercial
Number Patronage
A
C
1
2
3
4

Heavy
A
B
C
Medium
A
B
C
Low
A
B
C
None
A
B
C

Block
Commercial
B

Store

Latin Square Design

Allows the researcher to statistically control two non

interacting external variables as well as to manipulate the
independent variable.
Each external or blocking variable is divided into an equal
number of blocks, or levels.
The independent variable is also divided into the same
number of levels.
A Latin square is conceptualized with the rows and columns
representing the blocks in the two external variables.
The levels of the independent variable are assigned to the
cells in the table.
The assignment rule is that each level of the independent
variable should appear only once in each row and each
column.

Latin Square Design

Interest in the Store
Store Patronage
High
Medium
Heavy
B
Medium
Low and none

A
C
A

Low

C
B
C

A
B

Factorial Design
Is used to measure the effects of two or
more independent variables at various
levels.
A
factorial
design
may
also
be
conceptualized as a table.
In a two-factor design, each level of one
variable represents a row and each level of
another variable represents a column.

Factorial Design
Amount of Humor
Amount of Store
No
Medium
Information
Humor
Humor
Low
Medium
High

A
D
G

B
E

C
F

High
Humor

SAMPLING DESIGN AND PROCEDURE

The basic idea of sampling is that by selecting some of the

elements in a population, we may draw conclusions about the
entire population.
Population : The aggregate of all the elements, sharing some common set
of characteristics, that comprises the universe for the purpose of the
research problem.
Census : A complete enumeration of the elements of a population or study
objects.
Sample : A subgroup of the elements of a population or study objects.
Sampling Frame : A representation of the elements of the target
population. It consists of a list or set of directions for identifying the target
population.
Target population : The collection of elements or objects that possess the
information sought by the researcher and about which inferences are to be
made. The target population should be defined in terms of elements,
sampling units, extent, and time.
An element is the object about which or from which the information is
desired, e.g., the respondent.
A sampling unit is an element, or a unit containing the element, that is
available for selection at some stage of the sampling process.
Extent refers to the geographical boundaries.
Time is the time period under consideration.

Sample vs. Census

The Sampling Design Process

Define the
Population
Determine the Sampling
Frame
Select Sampling Technique(s)
Determine the Sample Size
Execute the Sampling Process

Qualitative factors in determining the

sample size

the importance of the decision

the nature of the research
the number of variables
the nature of the analysis
sample sizes used in similar studies
completion rates
resource constraints

Classification of Sampling
Techniques
Sampling
Techniques
Probability
Sampling
Techniques

Non probability
Sampling
Techniques
Convenience Judgmental
Sampling
Sampling

Simple
Random
Sampling

Quota
Sampling

Systematic
Sampling

Stratified
Sampling

Snowball
Sampling

Cluster Other Sampling

Techniques
Sampling

Convenience Sampling
Convenience sampling attempts to obtain a
sample of convenient elements.
Often,
respondents are selected because they happen to
be in the right place at the right time.
use of students, and members of social
organizations
mall intercept interviews without qualifying the
respondents
department stores using charge account lists
people on the street interviews

Judgmental Sampling
Judgmental sampling is a form of convenience
sampling in which the population elements are
selected based on the judgment of the
researcher.
test markets
purchase engineers selected in industrial
marketing research
expert witnesses used in court

Quota Sampling
Quota sampling may be viewed as two-stage restricted
judgmental sampling.
The first stage consists of developing control categories, or
quotas, of population elements. List control characteristics
and determine the distribution of control characteristics in
the target population.
In the second stage, sample elements are selected based on
convenience or judgment.
Population
composition

Sample
composition

Control
Characteristic Percentage
Percentage
Sex
Male
48
48
480
Female
52
52
520
____
____
____
100
100
1000

Number

Snowball Sampling
In snowball sampling, an initial group of
respondents is selected, usually at random.
After being interviewed, these respondents are
asked to identify others who belong to the
target population of interest.
Subsequent respondents are selected based on
the referrals.

Simple Random Sampling

Each element in the population has a known and equal
probability of selection.
Each possible sample of a given size (n) has a known and
equal probability of being the sample actually selected.
This implies that every element is selected independently of
every other element.
Limitations:
Difficult to construct a sampling frame permitting simple
random sample to draw.
SRS results in samples that are spread over large geographical
areas; increasing time and cost of data collection.
Low precision and large standard errors
May or may not result in a representative sample.

Systematic Sampling

The sample is chosen by selecting a random starting point

and then picking every ith element in succession from the
sampling frame.
The sampling interval, i, is determined by dividing the
population size N by the sample size n and rounding to the
nearest integer.
When the ordering of the elements is related to the
characteristic of interest, systematic sampling increases the
representativeness of the sample.
If the ordering of the elements produces a cyclical pattern,
systematic sampling may decrease the representativeness
of the sample.
For example, there are 100,000 elements in the population
and a sample of 1,000 is desired. In this case the sampling
interval, i, is 100. A random number between 1 and 100 is
selected. If, for example, this number is 23, the sample
consists of elements 23, 123, 223, 323, 423, 523, and so
on.

Stratified Sampling

A two-step process in which the population is partitioned into

subpopulations, or strata.
The strata should be mutually exclusive and collectively
exhaustive in that every population element should be assigned
to one and only one stratum and no population elements should
be omitted.
Next, elements are selected from each stratum by a random
procedure, usually SRS.
A major objective of stratified sampling is to increase precision
without increasing cost.
The elements within a stratum should be as homogeneous as
possible, but the elements in different strata should be as
heterogeneous as possible.
The stratification variables should also be closely related to the
characteristic of interest.
Finally, the variables should decrease the cost of the
stratification process by being easy to measure and apply.
In proportionate stratified sampling, the size of the sample drawn
from each stratum is proportionate to the relative size of that
stratum in the total population.
In disproportionate stratified sampling, the size of the sample
from each stratum is proportionate to the relative size of that
stratum and to the standard deviation of the distribution of the
characteristic of interest

Cluster Sampling
The target population is first divided into mutually exclusive and
collectively exhaustive subpopulations, or clusters.
Then a random sample of clusters is selected, based on a
probability sampling technique such as SRS.
For each selected cluster, either all the elements are included in
the sample (one-stage) or a sample of elements is drawn
probabilistically (two-stage).
Elements within a cluster should be as heterogeneous as
possible, but clusters themselves should be as homogeneous as
possible.
Ideally, each cluster should be a small-scale
representation of the population.
In probability proportionate to size sampling, the clusters
are sampled with probability proportional to size. In the second
stage, the probability of selecting a sampling unit in a selected
cluster varies inversely with the size of the cluster.

Strengths and Weaknesses of

Basic Sampling Techniques
Technique

Strengths

Weaknesses

NonprobabilitySampling
Conveniencesampling

Leastexpensive,least
timeconsuming,most
convenient
Lowcost,convenient,
nottimeconsuming
Samplecanbecontrolled
forcertaincharacteristics
Canestimaterare
characteristics

Selectionbias,samplenot
representative,notrecommendedfor
descriptiveorcausalresearch
Doesnotallowgeneralization,
subjective
Selectionbias,noassuranceof
Representativeness
Timeconsuming

Easilyunderstood,
resultsprojectable

Difficulttoconstructsampling
frame,expensive,lowerprecision,
noassuranceofrepresentativeness.
Candecreaserepresentativeness

Judgmentalsampling
Quotasampling
Snowballsampling
Probabilitysampling
Simplerandomsampling
(SRS)
Systematicsampling

Stratifiedsampling
Clustersampling

Canincrease
representativeness,
easiertoimplementthan
SRS,samplingframenot
necessary
Includeallimportant
subpopulations,
precision
Easytoimplement,cost
effective

Difficulttoselectrelevant
stratificationvariables,notfeasibleto
stratifyonmanyvariables,expensive
Imprecise,difficulttocomputeand
interpretresults

Choosing Nonprobability vs.

Probability Sampling